What is the right calculation to use to determine the value of taking a reduced pension amount earlier.
Current pension (benefits have been frozen), reduces the payout by 5% each year before age 65. So at age 55 (earliest you can take it) would give you 50% of your full pension. No COLA involved.
I do not need the money and (belive) i could always go back to company and start it earlier than 65 (assuming I left) but some little part of me worries what if i leave them alone for 10 years they may forget who i am when i want my money .
I know for SS there is a calculation which shows the best option of when to start.
As with all retirement calculations knowing the date of death makes it so much easier but ...
Any thoughts on how to calculate this mathematically?
Thanks
Current pension (benefits have been frozen), reduces the payout by 5% each year before age 65. So at age 55 (earliest you can take it) would give you 50% of your full pension. No COLA involved.
I do not need the money and (belive) i could always go back to company and start it earlier than 65 (assuming I left) but some little part of me worries what if i leave them alone for 10 years they may forget who i am when i want my money .
I know for SS there is a calculation which shows the best option of when to start.
As with all retirement calculations knowing the date of death makes it so much easier but ...
Any thoughts on how to calculate this mathematically?
Thanks